All Forum Posts by: Babatunde Onadele Jr

You guys are great! Thanks for all your great replies. I am going to get one together. I found one someone was willing to share in the BP community, will modify it and submit it to my lawyer.

My property management company hires that out to third parties when the job is too large.  I'd be happy to recommend them.

I second what @John Underwood said @Babatunde Onadele Jr. There are so many cabins to check out on VRBO and AirBNB with great pics. You should be able to put together a place that looks great with some interesting designs that attract guests.

There are so many online resources available for free that you can build it yourself.

I am guessing that you are a whole country away from your new STR and that is the main reason you need the help?

 It is probably not worth the fee to cost seg something of this size but I can put you in touch with the CPA that knows a good cost seg firm

@James Wise is the man to ask about Cleveland.

This isn't the same situation as 2008 and the truth is that nobody knows what will happen. I suspect we'll continue to see prices drop for 6-12 months. You can't have meteoric price increases without a correction. Interest rates and prices are both up significantly, so fewer people can afford to buy. Rent demand is high, but it's harder for people to afford the rent increases when everything else is so expensive, so renters are more likely to downsize, meaning rents won't increase at the same pace as the sales prices and investments won't make sense for a lot of investors. It will slow the market, fewer people will buy, sellers will panic and start dropping their prices. I expect at least a 20% decrease from the peak back in June/July 2022. I won't be surprised if we see prices come down 30-40% in the hottest markets.

It's only nuts if you buy it for $350k.

The Cleveland market doesn't appreciate much. After the last crash, it took ten years just to recover the losses. Do you honestly believe a property can double in price in six months without a penalty at the end? Nothing significant happened in Cleveland to justify these increases. People had extra money, they moved, and a frenzy ensued.

There will be a correction and it may be uglier than people expect. It's definitely not a good time to pay top dollar.

@Babatunde Onadele Jr of course!  Anything from moisture to extreme heat to shifting ground to hurricanes to fires to harsh winters to EVERYTHING could happen when you invest in real estate.  There will always be something no matter what market you are analyzing.  And you should be using a constant maintanence/cap ex number on all of your deals that factor this in.  I use 18% in my calculations.   

Now, as someone that has invested out of state for many years the most critical piece of the equation to me is where is your trusted network of advisors? Meaning, if you don't know anyone in Indiana....but you do know a real estate person in New Mexico....then you need to go with New Mexico - even if Indiana shows you more returns on paper. As an out of state investor you may NEVER EVEN SEE YOUR PROPERTIES....so you need people that you can trust. So if you know a realtor in Euclid, and have a good property manager there, and also have an insurance person, rehab, contractors, etc. then go with that place over other places.  If you think this "porch" is a concern, then make your offer $5k lower to compensate for it.  I always feel a lot more comfortable with properties if I buy them at lower price points.

Hope all of that makes sense.  Thanks!

@Babatunde Onadele Jr

I would guess the winters and the amount of snow would have an impact.

The lake is not salt water so you do not have the corrosion you have near oceans